Inclusive Credit

OracleAI enables inclusive credit decisioning by transitioning DeFi lending from overcollateralized to undercollateralized and ultimately no-collateral models using AI-driven scores.

Present: Overcollateralized Lending OracleAI credit scores are currently used to optimize Loan-to-Value (LTV) ratios, improving the efficiency of overcollateralized lending models common in DeFi today.

Near Future: Undercollateralized Lending As credit scores gain trust and credibility, Credible envisions reducing collateral requirements for loans, allowing users with strong credit scores to access funds with less upfront capital.

Long-Term Vision: No-Collateral Lending The ultimate goal is to enable no-collateral lending, where creditworthiness is based entirely on OracleAI’s credit scores and reports. This paradigm shift could make DeFi lending accessible to millions of users previously excluded due to lack of collateral.